VLXUSDT on +125%, strongest 3day rally of 2022. What's next?
The Velas coin (VLXUSDT) completed yesterday a +125% 3-day streak, which is the strongest 3-day rally since the +258% of November 03 2021. By doing so, the price broke above the 1D MA50 (blue trend-line) but failed to close above it. This should be enough to put an end to this rally for at least 1-3 days but the true technical Resistance remains the 1D MA200 (orange trend-line), with Velas failing to close above since February 23.
The long-term pattern remains a Channel Down since late 2021. Actually as long as the price trades below the 0.29000 Resistance formed of the April 06 High, the trend remains bearish. That is the Resistance of a potential Inverse Head and Shoulders (IH&S) pattern, that happens to be almost where the 1D MA200 is. This is a pattern technically seen during downtrends such as the current one, and typically forms bottoms and kick-starts bullish reversals.
The last similar pattern failed to break above its Resistance on January 04, even though its was not during a downtrend. So you realize how critical the 0.29000 Resistance level is. Note that the RSI on the 1W time-frame has been trading and closing below its MA line (yellow) since November 30. A 1W closing above it, should be enough to restore the long-term bullish trend, especially if it coincides with a break above the 0.29000 Resistance.
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The long-term pattern remains a Channel Down since late 2021. Actually as long as the price trades below the 0.29000 Resistance formed of the April 06 High, the trend remains bearish. That is the Resistance of a potential Inverse Head and Shoulders (IH&S) pattern, that happens to be almost where the 1D MA200 is. This is a pattern technically seen during downtrends such as the current one, and typically forms bottoms and kick-starts bullish reversals.
The last similar pattern failed to break above its Resistance on January 04, even though its was not during a downtrend. So you realize how critical the 0.29000 Resistance level is. Note that the RSI on the 1W time-frame has been trading and closing below its MA line (yellow) since November 30. A 1W closing above it, should be enough to restore the long-term bullish trend, especially if it coincides with a break above the 0.29000 Resistance.
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** Please support this idea with your likes and comments, it is the best way to keep it relevant and support me. **
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